HISTORIC PRESS RELEASE : Bank of England Act 1998 [April 1998]

The press release issued by HM Treasury on 23 April 1998.

The Bill, which establishes the Bank of England Monetary Policy Committee and transfers banking supervision from the Bank of England to the Financial Services Authority received Royal Assent today.

The Bank of England Act 1998, gives effect to the policy changes announced by the Chancellor Gordon Brown in May 1997 when he announced a new framework for monetary policy and the transfer of banking supervision. The Act also puts in place a new accountability framework for the Bank, and greater transparency in the Bank’s operations.

Welcoming the swift passage of the legislation, the Chief Secretary Alistair Darling said:

“Less than a year after taking office, the Government has put in place the most far reaching changes the Bank has seen in centuries.

“The Bank of England Act is a keystone in modernising Britain’s economy and creating a modern bank ready for the 21st century.

“The Act puts in place a new framework which will promote economic stability and give a long-term focus to monetary policy.

“It maximises openness and transparency and ensures that the Bank is fully accountable and that its conduct of monetary policy meets the economic needs of the nation.”

The intention is the Act will come into force on 1 June 1998.